Case study reveals how a building owner attracted a Fortune500 tenant offering tenant improvements which became revenue streams instead of costs.

1. Presented by:
Future-Proof Buildings
For More Profitable & Competitive C&I Portfolios

2. We’re at or near the end of this real estate business cycle.
Interest rates are up and it’s just a matter of time before
we see cap rates move up too. Soon, tenants are trying to
leverage rising vacancy for rent and TI concessions -
putting the squeeze on building owners and property
managers.
How do you increase NOI and corresponding value…?
The
BIG IDEA

3. What if there was a way to capture the tens to hundreds of
thousands of dollars your tenants currently send offsite -
building the utility company’s empire, without using cash
reserves or tapping credit lines?
This deck introduces our proprietary solution for increased
revenue per square-foot and increased property value.
The
BIG IDEA

4. 1. You can now produce
power onsite using
proven, reliable and
clean technology for
50% of the price of
electricity charged by
SDG&E, SCE and
PG&E- including the
cost of financing.
THE
OPPORTUNITY

5. THE
OPPORTUNITY

6. 2. California building owners can sell electricity to their tenants…
“so long as the price charged is not greater than the rate charged by
the local utility.”
THE
OPPORTUNITY
References:
PUC Ruling D. 07-09-004 September 6, 2007 (Applied to PG&E)
PUC Ruling D. 08-02-034 February 28, 2008 (Applied to SDG&E)
PUC Advice 2234-E-A and E4419 December 9, 2011 (Applied to SCE)

7. 3. West Hills has developed a 1-page lease addendum property owners
can use to create brand new streams of income by generating, and then
selling electricity to their tenants.
THE
OPPORTUNITY

8. In addition, with the use of PACE financing (Property Assessed Clean
Energy), building owners can finance:
• 100% of the cost of the improvements
• Up to 25 year terms
• Non-recourse basis
• No lien on the property
THE
OPPORTUNITY

9. Case Study:
Chiquita Brands:
Saving a Sideways Deal
• 513,000 Sq.Ft.
• Built in 1975
• $1,300,000 Roof Replacement
• $175,000 utility service deposit
• Required Substantial Electrical
Upgrades*
*In order to power all of the refrigerated trailers while
docked as required by the Port.

10. • Owner provided new roof &
electrical upgrades
• $2,600,000 tax benefit
• $360,000 annual project
revenue
Case Study:
Chiquita Brands:
Saving a Sideways Deal

11. *Based on 2019 30% ITC and 100% Depreciation
Chiquita Distribution Center
513,000 SqFt. Oxnard, CA
Project CAPEX 3,263,000$
Corporate Tax Benefits* 1,855,015$
Amount Financed 1,407,985$
New Annual Project Revenue 360,000$ $0.70 psf
Annual PACE Assessment 127,000$ $0.25 psf
Net Revenue 233,000$ $0.45 psf

12. Owner Benefits:
1. Brand new revenue stream.
2. Higher NOI & property value.
3. Cash flow increases w/ electricity rates
(*4% to 6% on avg. in CA)

13. Owner Benefits (cont.):
4. Lower tenant turnover thanks to locked-in, lower
electrical costs.
5. Earn the distinguished Zero Net Energy (NZE) rating
for your building.

14. Tenant Benefits:
1. Lower cost of electricity.
2. Refund of any tenant deposits provided to the electric
utility.
3. Familiar billing format to their existing electric bill.
4. Options to remain connected or be isolated from the
grid.

15. Which Sectors Work?
• Commercial / Industrial
• Multi-family
• Retail (primarily anchored centers where electricity can be
sold to inline stores)
• Office
The program works well with NNN as well as modified gross
leases.

16. Joseph Dowling
Project Developer
Direct (951) 523-7972
jdowling@whc.us.com
Interested to Learn More?